Guiltinan (1999): Launch strategy, launch tactics, and demand outcomes
23 important questions on Guiltinan (1999): Launch strategy, launch tactics, and demand outcomes
What is the role and the importance of the launch stage in NPD processes?
- The role of the launch stage is to maximise the chances of profitably achieving acceptance in the target market
- This is the stage that represents the largest investment in the entire process because of the combination of production and marketing expenditures incurred once a decision to launch is approved
A launch plan must help to stimulate different kinds of buying behaviour patterns. What are the three types of desired demand outcomes?
- Adoption and diffusion
- Migration
- Trial and repurchase
What kind of framework is provided in the paper by Guiltinan (1999)?
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What does the desired demand outcome trial and repurchase entail?
What is the sequence of marketing activities which are typically associated with stage-gate approaches to development (figure)?
- Stage 1: Preliminary Investigation
- Market, competition, feasibility, constraints, resources
- Assessments of Product-Company Fit & Market Opportunity
- Stage 2: Detailed Investigation
- User needs and wants, technical assessments, market forecasts, concept tests
- Marketing strategy (positioning, product design)
- Stage 3: Development
- Development & testing, marketing launch plan
- Final launch plan
What does the desired demand outcome customer migration entail?
upgrade or change on an existing product, the challenge is to make existing customers migrate (aantrekken) to the new product.
When in the NPD process is launch planning positioned?
What does the desired demand outcome innovation adoption and diffusion entail?
Which two kind of decisions can a launch plan include?
- Strategic decisions
- Relative innovativeness, mass vs. niche targeting, lead vs. follow
- Tactical decisions
- Types of communication and distribution activities, introductory pricing, branding, and when to announce new items and delete old ones
The degree of innovativeness defines the desired buying behaviour on which the launch strategy is focused (figure). Explain this focus and goal for:
- New entry of line addition in existing market
- Product improvement
- New to the world (really new)
- New entry of line addition in existing market
- Focus on selective demand
- Goal is trial and repeat
- Product improvement
- Focus on replacement demand
- Goal is migration
- New to the world (really new)
- Focus on primary demand
- Goal is adoption and diffusion
Which two kind of decisions can a launch plan include?
- Strategic decisions
- Relative innovativeness, mass vs. niche targeting, lead vs. follow
- Tactical decisions
- Types of communication and distribution activities, introductory pricing, branding, and when to announce new items and delete old ones
What are the six different classes of products?
- New-to-the-world products
- New (to the firm) product lines that enter established markets
- Additions to existing lines
- Improved/revised products re-entering established markets
- Repositionings
- Cost reductions
How does the figure with the antecendents and components of launch planning look like?
- The strategic and tactical launch varaibles are connected with each other by the product-market characteristics, technical environment and firm's resources
On which 4 aspects depends the level of trial achieved?
- Advertising
- Selling
- Promotional methods that provide brand and concept awareness
- Distribution availability
On which process may the launch plan be focused in order to achieve customer migration?
Which launch tactics can be used by low compatibility and low relative advantage (matrix)?
- Penetration price (to stimulate trial)
- Slow deletion (to avoid antagonizing (tegenwerken van) establised customers)
- Risk-based promotion (to reduce risks)
The diffusion forecasting model by Bass postulates that the adoption process for a new durable has two components. Which ones?
- Innovative component
- Imitative (imitatie) component
Which launch tactics can be used by low compatibility and high relative advantage (matrix, really new products)?
- Preannounce (to alert buyers to prepare for changes)
- Broad assortments (to customize new product)
- Information-based promotion (to emphasize relative advantage and overcome incompatibilities)
What are the 5 characteristics of a new product that influence adoption?
- Relative advantage
- Comparative price and performance
- Compatibility with values and experiences
- Whether it is compatible with sociocultural values and beliefs of the market, perviously introduces ideas and practices & felt needs for the innovation
- Complexity in use or understanding
- Consumer may think they need new skills or training
- Trialability
- Samples or test drives are ways to reduce buyer's uncertainty
- Observability
- Observing tangible features, more likely to adopt
Which launch tactics can be used by high compatibility and low relative advantage (matrix)?
- Secrecy (delay announcements until close to launch
- Narrow assortments (easier to sell to distributors)
- Awareness-based promotion (primary determinant of trial)
Which two characteristics of new products appear to have the greatest direct influence on trial and adoption and can be influenced directly?
- Relative advantage
- Compatibility
Which launch tactics can be used by high compatibility and high relative advantage (matrix)?
- Skim price (when advantages are highly valued by early adopters)
- Fast deletion (motivate migration)
- User-based promotion (based on benefits for users)
What are 3 the main conclusions of the paper by Guiltinan (1999)?
- The strategic and tactical challenges posed in various product launch situations depend in large measure on the specific type of buying behaviour to be influenced
- The degree to which the desired demand outcome is realized is dependent on buyers’ perceptions of the new product’s relative advantage and compatibility
- A core assumption of the framework is that the fundamental process underlying market acceptance is essentially the same regardless of the nature of the product
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